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Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate.
Answer: the conditions when forward exchange rate will be an unbiased predictor of the future spot rate is
a) If the risk premium is insignificant and
b) If foreign exchange markets are informationally efficient.
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Repurchase agreement is a contract wherein the seller of a security agrees to buy back the same security from the purchaser at a specified price and time. It is also
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